The Trump administration has proposed eliminating the up to 60-day grace period that gives many H-1B and other employment-based visa holders time to address their immigration status after losing a job. If finalized, the change could leave affected foreign professionals with far less time to find another sponsor, pursue a different lawful status or prepare to leave the United States.
The move is particularly important for skilled workers in technology, consulting and other professional fields, including many Indians. For now, however, the existing framework has not been eliminated. DHS is seeking a regulatory change that must complete the federal rulemaking process before it can take effect.
JUST IN: đşđ¸ US to scrap 60-day grace period for H-1B and L-1 visa holders, forcing many foreign workers to leave immediately after losing their jobs.
— Remarks (@remarks) September 10, 2026
DHS seeks to remove a protection in place since 2017
The Department of Homeland Security proposal is titled âEliminating the Discretionary 60-day Grace Period.â Current regulations allow qualifying workers in several nonimmigrant categories and their dependents up to 60 consecutive days after the employment or activity supporting their status ends.
The provision has been in place since 2017. It can provide time to secure another qualifying employer, pursue an alternative immigration option or organize a departure from the country.
DHS argues that nonimmigrant employment status should remain directly connected to the job or activity on which admission or status was based. The agency also says removing the provision would reduce administrative burden.
The regulatory language and instructions for submitting comments are available in the official Federal Register notice from DHS and USCIS.
Layoffs could trigger much faster immigration decisions
Under today’s framework, an eligible H-1B employee who loses a sponsored position may have a limited window to interview for another job, secure a new sponsor, seek another lawful status or arrange a departure, subject to the person’s authorized stay and individual circumstances.
If the proposed regulation is finalized in its current form, covered workers would generally be expected to depart when they stop maintaining the employment or activity supporting their status, unless they are otherwise authorized to lawfully remain in the United States.
This does not mean every H-1B employee would automatically be deported on the day a job ends. Another valid immigration authorization or relevant filing could affect an individual’s situation.
Employers would also have less room to manage transitions
DHS acknowledges that companies could experience disruption. The agency says employers may offer positions to equally qualified U.S. workers or, depending on workforce requirements, use the Form I-129 petition process for foreign employees.
Immigration lawyers have warned that removing the buffer could sharply compress the timeline HR teams have to handle layoffs and offboarding involving foreign nationals.
The development comes as businesses are already assessing other potential costs involving skilled-worker sponsorship, including the proposed $103,265 H-1B petition fee and who could be affected.
Indian professionals could face added uncertainty
The regulation would apply by visa classification rather than nationality, but its impact is especially relevant to Indian professionals because they represent a major part of the U.S. H-1B workforce. Deloitte, PwC, EY, Tata Consultancy Services, Infosys, HCLTech and LTIMindtree are among companies that have been prominent sponsors.
For workers pursuing permanent residence, losing a sponsored job can create another layer of uncertainty. The employment-based Green Card backlog affecting Indian applicants illustrates why some professionals can remain dependent on temporary work status for years.
Families and several other visa groups are also involved
The existing buffer can matter beyond finding another employer. Long-term foreign workers may have children in school, housing commitments and established lives in their communities. A shorter transition period could require families to make employment, schooling, housing and relocation decisions much faster.
The proposal is also broader than H-1B. It covers E-1, E-2, E-3, H-1B, H-1B1, L-1, O-1 and TN classifications and qualifying dependents under the existing framework. That brings treaty traders and investors, multinational employees, extraordinary-ability professionals and certain Australian, Canadian, Mexican, Singaporean and Chilean workers into the debate.
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The current grace-period framework remains in place
For visa holders, the key distinction is that this is a proposed rule, not a final regulation. DHS is providing a 60-day public-comment period before moving further through the rulemaking process.
A final version could differ from the proposal and would need an effective date before the new requirements begin. Until then, workers should not interpret headlines about the proposal as confirmation that the existing protection has already disappeared.
The current provision is also discretionary rather than an automatic guarantee of 60 additional days in every case. Anyone who actually loses sponsored employment should consider their authorized stay, employment end date and any pending immigration filings when assessing their options.
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